MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JGBS: Cash Bonds Cheaper After BoJ Target Rate Left Unchanged

JGBS
GlobalBulletAPACFixed Income BulletsJapanRegionMarkets

JGB futures have opened the afternoon session weaker, -7 compared to the settlement levels.

  • As unanimously expected, the BoJ, with a 9 to 0 vote, left the unsecured overnight call rate at 0.25%, signaling no need to hurry with interest rate hikes.
  • The BoJ highlighted the need to monitor the impact of market movements on the economy and inflation, noting high uncertainties in both areas. Despite this, Japan's economy is expected to continue to grow above its potential rate.
  • The BoJ also emphasised the importance of paying close attention to financial and forex markets, acknowledging that exchange rates are now more likely to influence prices than in the past.
  • The BoJ noted that the year-on-year rise in core CPI has been in the 2.5%-3% range recently. It expects inflation to align with its target in the latter part of the projection period. The central bank also highlighted that exchange rate developments are more likely to impact prices and anticipate a rise in medium-to-long-term inflation expectations.
  • Cash US tsys are 1-2bps richer in today’s Asia-Pac session.
  • Cash JGBs are weaker across benchmarks with the 1-year the underperformer (+3.8bps).
  • Swap rates are flat to 1bp higher. Swap spreads are mixed.
192 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

JGB futures have opened the afternoon session weaker, -7 compared to the settlement levels.

  • As unanimously expected, the BoJ, with a 9 to 0 vote, left the unsecured overnight call rate at 0.25%, signaling no need to hurry with interest rate hikes.
  • The BoJ highlighted the need to monitor the impact of market movements on the economy and inflation, noting high uncertainties in both areas. Despite this, Japan's economy is expected to continue to grow above its potential rate.
  • The BoJ also emphasised the importance of paying close attention to financial and forex markets, acknowledging that exchange rates are now more likely to influence prices than in the past.
  • The BoJ noted that the year-on-year rise in core CPI has been in the 2.5%-3% range recently. It expects inflation to align with its target in the latter part of the projection period. The central bank also highlighted that exchange rate developments are more likely to impact prices and anticipate a rise in medium-to-long-term inflation expectations.
  • Cash US tsys are 1-2bps richer in today’s Asia-Pac session.
  • Cash JGBs are weaker across benchmarks with the 1-year the underperformer (+3.8bps).
  • Swap rates are flat to 1bp higher. Swap spreads are mixed.